We will now begin the question-and-answer session. The first question is from the line of Ragini from Elara Capital. Please go ahead.

So sir, what is the under recovery in Teesta-V Hydro Plant?

Yes. As you know, our Teesta-V Power Station is down since October’23 due to flash flood in the Teesta Basin. But our Business Interruption Loss is fully insured for one year period and one year period has completed in September’24. So, after September’24, we will not be

getting any Business Interruption Loss from Insurance Company and

whatever expenditure is being incurred , that will go to the Profit and Loss Account. So you can say, there is loss of revenue in the respect of Teesta-V.

Sir, what was the amount you said, loss? What's the loss amount?

Yes, Ragini, so on annual basis, the total AFC of Teesta-V is around Rs. 450 Crore and the recoverable amount from Insurance Company is Rs. 410 Crore, out of which we have already recovered Rs. 250 Crore so far. So, if you consider on annual basis, the total loss on account of Teesta-

V without Business Interruption Loss (BI loss) Claim would be around

Rs. 450 Crore. But since for 12 months indemnity period, our insurance policy is there, so recoverable amount stands at Rs. 410 crore. So, in a way you can say that under recoveries are around Rs. 40-50 Crore only.

Okay and when will this plant begin operations?

As per our latest estimate, this plant will commence generation by December’25. Reason being, this plant suffered a second inciden t in August'24.

Okay and sir, for the projects for which the PPA exist or for which you signed the Power Purchase Agreement. Is there any issue in signing the Power Supply Agreement for a Renewable P roject, as a Renewable Energy Implementation Agency?

So far Hydro Power Stations are concerned, our power is totally tied up and there is no issue of signing of PPA. But in case of Renewable Energy from Solar or Hybrid Mode, wherever the Solar Power is in the range of Rs. 2.60, Rs. 2.65 per unit, there is no issue. But in case of some of the tenders in REI A Mode, we are facing problems in signing PPA. But there is no risk from NHPC side because we are implementing these projects in REIA Mode only.

So, I mean, is there a risk of cancellation of PPA for such renewable projects?

No. Whatever PPA has been signed , they are being honoured. But in case of future in REI A Mode, if tariff is in viable range, PPA will be certainly signed. But if tariff is high, certainly DISCOMs may refuse to sign.

Okay, I will join back the queue.

Thank you. The next question is from the line of Rupesh Sankhe from Elara Capital. Please go ahead, sir.

Good afternoon, sir. A couple of questions. Fi rstly sir, on Regulated Equity. What is the Regulated Equity you are expecting post commissioning of JV, Standalone Projects, let's say, in the next 3 to 4 years? And second question is sir, we have significant CAPEX ahead over next 7 to 8 years. So, how are we placed in terms of cash flows to meet this equity CAPEX contribution? That is the second question.

Yes, Rupesh. So, since we have been discussi ng regarding this Regulated Equity, you are aware that currently the Company is placed at the Regulated Equity level of almost Rs. 13,000 Crore. Now going forward, we have the capacity addition from Parbati-II, Subansiri, then Rangit-IV and then couple of projects from our JV side, subsidiary side also. So, if you look at the year wise capacity addition and their resultant Regulated Equity , I can share with you by end of FY ’25, after commissioning of Parbati-II, our Regulated Equity will be Rs. 16,500 Crore from the current level of Rs. 13,000 Crore. Then in FY’26 after commissioning of Rangit-IV, the resultant Regulated Equity will be Rs. 17,000 Crore a nd by FY’27 after full commissioning of Subansiri and Pakal Dul (1,000 MW), the resultant Regulated Equity will be Rs. 25,365 Crore. And by FY’28 which is a major year from the commissioning pe rspective, we are going to commission three projects, Teesta-VI (500 MW), Kwar (540 MW) and Ratle (850 MW). So, Regulated Equity will be Rs. 28,590 Crore. So, meaning thereby, in next four years, our Regulated Equity is going to be more than double. So, current level of Rs. 13,000 Crore is going to be Rs. 28,500 Crore.

Regarding your question about cash flow for incurring CAPEX, our present Debt Equity Ratio is in the range of 0.84 only. So, there is no issue of cash flow. After commissioning of these ongoing projects, we will have sufficient internal accruals for infusing equity in the upcoming projects and for raising debt, we have no issue because we are very under leveraged.

Okay, sir. Thank you.

Thank you. The next question is from the line of Anuj Upadhyay from Investec Capital. Please go ahead.

Thanks for the opportunity, sir. Sir, if you can share details on the Secondary Charges, UI and Incentives for the quarter in comparison to the last year corresponding quarter , that would be helpful. That would be my first question.

During this Half Year, we have earned Secondary Energy Charges to the tune of Rs. 3 Crore as against corresponding previous period of Rs. 6 Crore and Deviation Charges, we have earned Rs. 24 Crore in this Half Year as against Rs. 21 Crore in the corresponding previous period. And for the Quarter, the Secondary Energy Charges is again Rs. 3 Crore as against Rs. 6 Crore in the corresponding previous period. Deviation Charges are Rs. 13 Crore as against Rs. 10 Crore in the corresponding previous period. Any other detail?

Okay, nothing on Incentive, sir?

As I told you, we have changed the system of recognizing PAF Incentive. PAF Incentive will be recognized after achieving NAPAF. So, whatever the PAF Incentive will be, that will be realized majority in the fourth quarter.

Okay and sir, just a follow -up on the previous question where you are referring that the Insurance Cover is for the 1 year on the interruption for the Teesta. So as against Rs. 450 Crore of our fixed cost, we have recovered Rs. 410 Crore and Rs. 40 Crore is roughly under recovery until September?

But out of this Rs. 450 Crore, we will be recovering Rs. 410 Crore after absorbing Rs. 40 Crore on account of Excess Clause. So out of Rs. 410 Crore, we have already recognized Rs . 250 Crore up to Sep tember Quarter and balance Rs. 160 Crore will be recognized in the coming period.

Got it, sir, But this Insurance Cover is only for the 1 year since the plant has gone for the outages. So sir, from here on, as you mentioned, the COD is expected in Decem ber’25, that is say another 15 months from now. So, is it fair to assume that for next 1 year or 15 months, your under recovery would cross closer to around Rs. 450 – 500-odd Crore.

Yes, sir. So, you correctly understood.

And there is no cover for this?

Yes, there is no cover because cover is limited to 1 year only.

Thank you. The next question is from the line of Rupesh Sankhe from Elara Securities Private Limited. Please go ahead sir.

One more question, sir. Can you just give us update on the Dibang Project, sir and any awarding of EPC tender for the Sawalkot and Dugar?

For Dibang Project, as I explained, five contract packages out of the seven contract packages have already been awarded and the works are going well on the project site. We have established the permanent access which is without interruption to t he project site. So, that is one a nd the progress on the various underground structures, the dive rsion tunnel, these are going well. Presently, we are in the process of tendering the Dam Contract and we are hopeful that by another 2-3 months, we will be able to award the Dam Package . And thereafter, only one package will be left, Hydromechanical. So that will take some time and it is required to be awarded after few months, so no issue. So , Dibang is going well. No problem is there. Any more questions?

Sir, regarding this EPC tender for Sawalkot and Dugar?

Sawalkot and Dugar. Dugar, we have already floated tender for Civil Works and the last date was 11th November. So just at the request of few bidders, we have extended the bids. Now, we have recommended to extend the bid by another three weeks. And Sawalkot, we are just in the process of floating the tender for Infrastructure and Diversion Tunnel Works and also floating tender for the Consultancy Works for Design and Drawings of the Dam Package.

Thank you for the updates.

Thanks for the opportunity. S ir, I joined the call a little late, so pardon for repetition. Can you share the Adjusted PAT number for this quarter and the same period last year?

Yes. So in the Adjusted PAT adjustment, you can just consider one item, which is reversal of provision of Bursar which is around Rs. 104 Crore. Apart from that, all other items are regular in nature. So accordingly, you can find out the Adjusted PAT.

Mr. Kaushal, our Operating Profit is comparable with last year. The dip is only on account of MAT Credit which we recognized last year and which is not available in current year. Otherwise, our Operating Profit is just comparable with last year.

Okay and then this Rs. 100 Crore which you mentioned.

Rs. 100 Crore is on account of reve rsal of one provision which we created in past and which has been reversed during current year because it is recoverable from the Government of India.

Okay. So, this is more like a Prior Period Income booked this quarter?

Yes, you can say.

Okay. So to that extent , I mean, like ideally from Rs. 905 Crore, we should subtract this Rs. 100 Crore to come to Adjusted PAT. Is that fair understanding?

No, Rs. 905 Crore does not consider this Rs. 100 Crore. Rs. 100 Crore was recognized in first quarter.

Got it, sir and this Other Income increase that we see, so that is primarily the Insurance Claim that is getting booked out here?

Okay and in the call, you did mention that for this Insurance Claim of Rs. 250 Crore is booked until now, so which means the incremental to reaching Rs. 410-odd Crore, which is almost like Rs. 160-odd Crore. So we'll be booking in the next 12 months?

Rs. 160 Crore will be booked in the next two quarters on the basis of certainty, we receive from Insurance Company . For Rs. 250 Crore, either amount has been received or we have received their acceptance. But for Rs. 160 Crore, we have to receive the consent of the Insurance Company in coming period.

Right and then this AFC is roughly Rs. 450-odd Crore, but as far as expenses are concerned, say to the extent of, I can understand like there won't be any O&M since the project is not in operation. So what are the fixed charges that you need to incur? I mean that probably has to be there for the next, let's say, Decem ber’25. So what are the fixed charges that is incurred?

In our case, generally it is fixed cost. Operation & Maintenance Staff is there, which will remain there a nd Interest, Finance Charges will be there, Depreciation will be there. So, 90% cost are in the nature of fixed cost and it will be incurred in the coming period. There is no variable part as such in our case.

No, my question was more to do with like because this AFC has ROE component. So I can und erstand there won't be any ROE, but there are certain fixed costs which will lead to under recovery, maybe like interest you need to pay to the banks, some annual depreciation accounting, you will continue. So to that ext ent, I was trying to unde rstand. Sir, one question on this Rs. 460 Crore AFC, what is the ROE component?

ROE is Rs. 228 Crore. Annual expenses in the range of Rs. 220 Crore.

As per our plan, it was to be commissioned in December’24. But hydro has some chall enges. That's why we are shifting our goal posts to February'25, we are starting filling the reservoir and we are testing gates etc. of the reserv oir, dam a nd our balance of activities are being completed. We are very much hopeful that we will be commiss ioning this project in February'25.

Right, sir and then what could be an ideal phasing of this 4 units? I mean, February and then how?

All the units will be commissioned at a time in a single stroke, because units have been tested and these will be operated one by one with the available water. So, commissioning will happen in single stroke only.

Okay, sir and then even for Subansiri Lower, the Quarter 1 of FY'27. So again, it is a one stroke or phasing will be there in that?

In respect of Subansiri, as per our plan, we will be commissioning three units by March'25 a nd rest five units will b e commissioned in pha sed manner and the complete project will be commissioned by May'26.

May’26? Okay. Got it. Sir , that’s all from my side. Thank you very much.

Thank you. The next question is from the line of Nikhil from UTI Mutual Fund. Please go ahead.

Sir, my first question is regarding the Note 8 of Standalone Financial Results. So , we are basically booking the Insurance Claims and then again we are expanding them through to Other Expense. Can we understand why we are doing that?

Mr. Nikhil, it is as per Accounting Guidelines and Accounting

Standards. The Loss is to be booked under Other Expenses. These two

activities are separate activities. Happening of loss is one activity and recovering the Insurance Claim is a separate activity. So , if you recognize the Claim on account of Insurance, it is being shown under Other Income.

So, of the total AFC of around Rs. 450 Crore, how much are we recovering from the insurance?

Out of Rs. 450 Crore annual AFC, we are expecting to recover Rs. 410 Crore after deducting Excess Clause.

So, Rs. 40 Crore is from?

Rs. 40 Crore will be under recovery. Out of Rs. 410 Crore, we have already recognized Rs. 250 Crore and balance Rs. 160 Crore, we will recognize in the coming period of this Financial Year.

Understood and sir, m y second question is regarding we were looking to monetize and securitize ROE for Dulhasti?

Yes.

So, are we on track on that a nd how much cash flow should we expect from that?

We have already completed this exercise and we have realized Rs. 2,300 crore-plus on account of this Securitization.

Rs. 2,300 Crore. For how many years have you securitized?

We have securitized for 8 years period and the total amount which we have realized is Rs. 2,348 Crore.

Rs. 2,348 Crore. Sir , the Regulated Equity for this plant will be somewhere around Rs. 1,500-odd Crore, right?

No, in case of Dulhasti, the Regulated Equity is Rs. 2,050 Crore.

Rs. 2,000-odd Crore. Okay an d you touched upon this point earlier as well. For solar plants, you mentioned the tariffs somewhere around Rs. 2.60, you're getting the PPAs, b ut even for the complex projects, the FDRE or the Hybrid Projects, the PPA s igning, is it taking some time because from the presentation, I can see that a lot of them have not signed yet?

Yes. For FDRE, we are getting the tariff of Rs. 4.73 or Rs. 4.75 and we are getting DISCOMs, the PPAs are being signed, only 1,200 MW was pending. So, we are in discussion with Uttar Pradesh DISCOM and we are hopeful that within a short period, we are going to sign the PPA for remaining unsigned capacity.

So sir, till date as intermediary, how muc h capacity have we tendered out and for how much have we signed the PPA, if you can give us?

Yes, just I will give.

We have tendered around 9,000 MW capacity. Out of that, we have signed PPA or we have received consent for aroun d 7,000 MW. For balance, we are in touch with DISCOMs and we are hopeful to receive their consent. Otherwise also, there is no r isk to NHPC because this is in REIA Mode only. We have no CPAEX in this.

Sir and we will be earning 7 paisa per unit.

Yes, 7 paisa fixed.

Sure. That’s all from my side. Thanks and all the best.

Thank you. Ladies and gentlemen, due to time constraints, that was the last question, I now hand over to Mr. Rupesh Sankhe for closing comments.

Yes, we thank the NHPC management for giving us an opportunity to host this call and we really appreciate for the detailed presentation there on the website. And we also thank all the investo rs and the analysts for joining this call.

Thank you. On behalf of Elara Securities Private Limited, that concludes the conference. Thank you for joining us and you may now disconnect your lines.